Opendoor’s stock jumped 17 percent from Wednesday’s market closing after it reported strong second quarter earnings.
Its shares closed at $14.50 on Wednesday but leaped to $16.98 when markets opened the next morning. Investors pushed the price close to $18 Thursday afternoon. Bloomberg reported in the late morning that Opendoor is seeking a $2 billion revolving credit facility to buy more homes.
The iBuyer reported $1.2 billion revenue in the second quarter, up from the $740,000 it took in around this time last year.
“Based on our current progress, our send half revenue run rate is on track to exceed our 2023 target, a full two years ahead of plan,” co-founder and CEO Eric Wu said during Opendoor’s earnings call on August 11.
Opendoor, which makes cash offers for homes, acquired a record 8,494 homes in the second quarter, the highest quarterly acquisition in its history by 50 percent, Wu added. It was driven by its buy box expansion, which allows it to underwrite most of the homes in its existing markets.
The startup is the biggest iBuyer in the game, ahead of giants Offerpad and Zillow. Since it went public last September in a $4.8 billion SPAC deal its shares have been on a wild ride, having peaked in February at $35.88 and dipping to a low of $14.15 in May.
Improvements in its launch playbook, investments in technology and automation and increased centralization are facilitating its expansion to new markets quickly, Wu said.
Opendoor launched in 12 new markets in the second quarter and two additional markets in July, bringing its reach to 41 markets total.